InvoiceBuddy vs Xero
Looking for a Xero alternative? Here's an honest look at how InvoiceBuddy compares with Xero, cloud accounting software — and which one suits you.
InvoiceBuddy
From $0
Free ($0) · Pro ($12/year) · Premium ($9/month)
Best for: freelancers, sole traders and small businesses who want fast, professional invoicing and to get paid — without paying for a full accounting suite.
Launching soonXero
From about $444/year (Ignite)
Ignite from $37/month (20 invoices/month); Grow $78/month; Comprehensive $107/month
Best for: Growing businesses that need full accounting — bank reconciliation, BAS lodgement, payroll and reporting — and usually work with an accountant or bookkeeper.
The quick verdict
If you need a full accounting system (and probably an accountant to go with it), Xero is a powerful choice. If you mainly need to send professional invoices and get paid, InvoiceBuddy is designed to do just that — for $12 a year instead of hundreds.
InvoiceBuddy vs Xero: feature comparison
| Feature | InvoiceBuddy | Xero |
|---|---|---|
| Main purpose | Simple invoicing and getting paid | Full accounting platform |
| Starting paid price | $12/year (Pro) | From $37/month (Ignite) |
| Free plan | Yes — up to 2 invoices/month | No (free trial / promos only) |
| Invoice limit on cheapest paid plan | Unlimited (Pro) | 20 invoices/month (Ignite) |
| Online card payments | Yes (Pro) | Yes (fees apply) |
| Bank feeds & reconciliation | No | Yes |
| BAS lodgement | No | Yes |
| Payroll | No | Yes (Comprehensive and above) |
| Learning curve | Minutes | Steeper — built for accounting |
InvoiceBuddy features describe our plans at launch. Xero details: Xero pricing · Rounded: Xero pricing explained. Ignite and Grow prices from Rounded's Xero pricing guide (May 2026, noting increases from July 2026); Comprehensive price from Xero's own pricing page. Xero is running a 90% off first-3-months offer for new customers until 2 November 2026. Prices in AUD; always check the provider's website for current pricing.
Pricing compared
InvoiceBuddy has three simple plans: Free (up to 2 invoices a month and 3 clients), Pro at $12 per year (unlimited invoices and clients, quotes, automatic reminders, online card payments and custom branding) and Premium at $9 per month (adds contracts and e-signatures, recurring invoices, advanced reports and team members). See all plan details.
Xero: Ignite from $37/month (20 invoices/month); Grow $78/month; Comprehensive $107/month.
Where Xero shines
- Complete accounting: bank feeds, reconciliation, BAS, payroll
- Huge app marketplace and accountant ecosystem
- Scales from small business to larger teams
Where Xero may be more than you need
- Cheapest plan caps you at 20 invoices a month
- Expensive if you only need to send invoices
- More setup and accounting knowledge required
Which should you choose?
Choose InvoiceBuddy if…
- You mainly need to send invoices and quotes, and get paid
- You want a free plan or a flat, low price ($12/year for Pro)
- You'd rather be set up in minutes than learn accounting software
- Your accountant (or you) handles tax and BAS separately
Choose Xero if…
- Growing businesses that need full accounting — bank reconciliation, BAS lodgement, payroll and reporting — and usually work with an accountant or bookkeeper.
Free invoicing guides
Whichever tool you choose, these guides will help you invoice correctly and get paid faster:
- What must a tax invoice include in Australia?
- How to invoice as a sole trader
- How to chase an unpaid invoice (5 templates)
Frequently asked questions
Is InvoiceBuddy a Xero alternative?
For invoicing, yes. InvoiceBuddy focuses on creating, sending and getting paid for invoices. It isn't a full accounting system, so if you need bank reconciliation, BAS lodgement or payroll, Xero covers more.
How much does Xero cost in Australia?
Xero's plans start with Ignite at around $37 per month (with a 20-invoice monthly limit), and Comprehensive is $107 per month, according to Xero and Rounded's pricing guide as at October 2026. Check Xero's pricing page for current offers.
Can I use InvoiceBuddy and Xero together?
You could use InvoiceBuddy for day-to-day invoicing and hand records to your accountant. Integrations aren't announced yet — register your interest to hear about them.
Comparison based on publicly available information checked on 22 October 2026. Competitor prices and features change — check Xero pricing · Rounded: Xero pricing explained for the latest. InvoiceBuddy is launching soon; features listed are planned for launch. Xero is a trademark of its owner; InvoiceBuddy is not affiliated with or endorsed by Xero.
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